...Stable Ratings in 2014/2015: The large majority of rating actions taken in 2014 and into 2015 were affirmations with Stable Outlooks. Ratings stability reflects the industry's very strong balance sheet fundamentals, sound liquidity profile and solid operating performance. The primary rating concern is the ongoing low interest rate environment and its potential effect on the industry's earnings profile and balance sheet fundamentals. Concern over Low Interest Rates: Fitch Ratings expects sustained low interest rates will continue to pressure interest margins and reserve adequacy, but will not have a material negative influence on industry earnings and capital in 2015. While the effect of sustained low interest rates is manageable over the near term, a key concern is life insurers overreaching for investment yield makes them vulnerable in the next credit downturn. Furthermore, a rapid rise in interest rates could also negatively affect insurers. The Fed's recent decision to leave rates unchanged...
